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By outcompeting its partners, Microsoft is endangering them

"[O]ur Surface devices will compete with products made by our OEM partners, which may affect their commitment to our platform," writes Microsoft Corp. (MSFT) on the fourteenth page of its annual report filed with the U.S. Securities and Exchange Commission.

As noted by The New York Times, the quote represents Microsoft's most forthright comment regarding the fact that the media and public has largely perceived Microsoft's first-party Windows 8 tablet as superior to rival designs from OEM partners.

Microsoft CEO Steve Ballmer says that 10.6-inch Surface tablet is merely "priming the pump" for OEM partners' Windows 8 tablets.  But his filing indicates clearly that he and his company are aware that OEMs may be damaged by their inability to compete with his slick tablet offering.

There's some risk to Microsoft from this approach.  Competing with a customer ruined the relationship of Samsung Electronics Comp., Ltd. (KSC:005930) with Apple, Inc. (AAPL) and likewise Google, Inc. (GOOG) with Apple.  


"Surface" may prove poison to Microsoft's own. [Image Source: Microsoft]

However, not competing is ultimately an even more risky choice.  After all, it's hard to argue that Google is worst off for owning the world's most-used smartphone platform, despite the headaches that decision earned for it.

Likewise, if Surface does well it may create some headaches regarding OEM relations, but it would also be a boon to Microsoft's empire of holdings.

Source: SEC



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RE: good for MS
By Reclaimer77 on 7/28/2012 7:59:11 PM , Rating: 0
Takin is known for making wide sweeping generalizations for everything being "crap" besides whatever Apple makes.

Although I've noticed now that Android Jelly Bean makes iOS look like the aging worn out punch-drunk prize fighter it is, he's mysteriously absent from discussions where he would normally interject his usual fanboi "crapdroid" trolling.


RE: good for MS
By TakinYourPoints on 7/28/2012 9:22:32 PM , Rating: 3
I know you want to polarize things just to make a strawman argument, but things aren't nearly as black and white as you'd like.

I've praised Lenovo notebooks numerous times, and I also like MSI's gaming laptops if portability isn't a concern. In this very thread you ignore my post where I say that Dell makes great monitors. My own PC is made from Corsair, Crucial, and EVGA components, and my monitors are Apple and NEC.

I've slowed down talking about Android because JB addresses many of the issues I've had with it. Why would I continue to complain about problems that are being addressed?

Unlike some people here who are in denial, I know my complaints are correct and Google is actively trying to fix them. There are still problems with fragmented OSes, hardware, and marketplaces, all of which lead to an inferior app library, but I believe that Google will make measures to fix that as well. They know that they can't play second fiddle to the iOS ecosystem despite having a larger piece of the smartphone market. There's also the lack of upgrades for most hardware, still a major problem, especially given that Samsung is among the worst offender and they're #1 right now. ICS is only on 10% of Android devices despite the fact that a lot of it is capable of running it, and the numbers for JB are unfortunately going to be low as well.

It isn't trolling if its true, sorry to say. I build my own PCs and I have no real allegiance to a single ecosystem. I believe I make better informed complaints than Swash on one side and people like you and Motoman on the other.


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